New Delhi: Union Minister Ashwini Vaishnaw, on 6 September, clarified that the recently announced next-generation Goods and Services Tax (GST) reforms by the GST Council are entirely homegrown and not influenced by any external developments, including US tariffs on Indian goods.
Vaishnaw said preparations for the reforms had begun nearly one-and-a-half years ago, well before the US elections. He also stated: “This initiative was taken in line with Prime Minister Narendra Modi’s clear goal to reform, perform and transform. External factors have no role to play in this next-generation reform.”
It was stated that the changes in the GST, described by the government as a major simplification, were finalised after months of deliberation and guidance from Prime Minister Narendra Modi. Vaishnaw stressed that the effort aims to ease the tax burden on citizens while providing a fresh boost to economic growth.
“Before 2014, the taxation system was very complex, with multiple levels of tax. GST has made it simple and the new rationalisation will make people’s lives easier,” he said.
The reforms include significant rate cuts on essential, electronic products, automobile and daily-use goods, which the minister said marked the fulfilment of PM Modi’s promise from the Red Fort. The changes, approved by the GST Council, will take effect on 22 September.
Linking the move with broader fiscal policy, Vaishnaw said the income tax relief announced in the 2025-26 budget, coupled with GST rationalisation, would push India’s economy further. He estimated that a 10 per cent rise in consumption could add Rs 20 lakh crore to GDP.
This clarification came after both US President Donald Trump and Prime Minister Narendra Modi reaffirmed their personal friendship and the strength of bilateral ties.
Responding to President Trump’s remark that he would always “be friends with Modi” and that there was nothing to worry about in the India-US special relationship, PM Modi posted on social media: “Deeply appreciate and fully reciprocate President Trump’s sentiments and positive assessment of our ties. India and the US share a very positive and forward-looking Comprehensive Global Strategic Partnership.”
Deeply appreciate and fully reciprocate President Trump’s sentiments and positive assessment of our ties.
India and the US have a very positive and forward-looking Comprehensive and Global Strategic Partnership.@realDonaldTrump @POTUS https://t.co/4hLo9wBpeF
— Narendra Modi (@narendramodi) September 6, 2025
